Asset Securitization: Bank Balance Sheet-Credit & Debit Commerce YouTube Lecture Handouts

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Asset Securitization: Bank Balance Sheet - Credit & Debit | Commerce

Title: Asset Securitization

Asset Securitization

To have the constant rolling of finance bank works out the process of Securitization

Loan Backed by the Securities of the Borrowers

  • Asset backed
  • Residential mortgage
  • Credit card
  • Automobile

Investors (Banks, Mutual Fund, Other Funding Institutions)

  • SPV 1000
  • INSTRUMENTS TRENCHING 1000
  • Equity (500) Debt (300) Bonds (200)
Banks, Mutual Fund, Other Funding Institutions

Collection of all illiquid assets = Bulking/Pooling by SPV

Bifurcating/Segmenting in different bits = Trenching by SPV

Trenching by SPV

✍ Manishika